BC Hydro is getting ready to install “smart meters” across the province that will tell customers how much electricity they’re using during the day.
The British Columbia program will not immediately come with mandatory higher rates for peak period use and lower rates for non-peak times, such as late at night.
In its business case for the new meters, released Jan. 18, BC Hydro states customers will be offered an opportunity to choose “time of use” rates if they want them.
However, that promise only lasts until all the new meters are installed, by the end of 2012.
BC Hydro states it’s still in the early stages of determining its rate structure for the smart meter era, and all rate changes must be approved by the BC Utilities Commission.
The smart meter program is budgeted to cost $930 million, including meters, wireless networks and in-home displays for customers.
NDP energy critic and leadership candidate John Horgan said a new time-of-day rate structure is inevitable, but it can’t be imposed until customers have smart meters.
He continues to question the high initial cost, especially as BC Hydro raises rates and contracts with higher-cost private power producers.
BC Hydro estimates the smart meter program will produce a net savings of $500 million over the next 20 years, through improved reliability and efficiency and conservation of energy.
The smart meters will report consumption automatically, eliminating the need for meter readers.
Furthermore, the new meters will also detect power outages and electricity theft.
Installation is to begin by mid-2011, and customers will receive notices along with their bills when installers are coming to their community.
Once a smart meter is installed, customers with computers will be able to log into their secure BC Hydro account and see a nearly real-time display of how much electricity they are using and when the peak times are.